India's Retail Credit Soars 19% to ₹137 Lakh Crore

India's retail credit market experienced significant expansion in FY26, with Assets Under Management (AUM) climbing to ₹137 lakh crore as of March 2026, marking a 19% year-on-year rise. New loan originations also surged by 31% to ₹75 lakh crore, indicating strong and sustained credit demand across different consumer categories.

The growth was fueled by both secured and unsecured lending segments. Secured credit, particularly gold loans and housing finance, saw substantial traction. Unsecured lending also rebounded in FY26 following a previous year's contraction. Asset quality across the industry demonstrated improvement, with net 30+ delinquencies decreasing to approximately 3% by March 2026.

Non-banking financial companies (NBFCs) and fintech lenders were instrumental in driving the expansion of retail credit, especially in unsecured and consumption-focused areas. Public sector banks reinforced their position in secured lending, notably in home loans. This indicates a move towards a more balanced and resilient credit environment, bolstered by digital innovation and wider distribution networks.